· The British Pound found support near 1.2900 and recovered against the US Dollar. · There is a major bullish trend line formed with support at 1.2840 on the 4-hour chart of GBP/USD.
GBP/USD Technical Analysis
This past week, the British Pound declined below the 1.2900 support against the US Dollar. The GBP/USD pair traded towards the 1.2800 area where buyers emerged and later the pair recovered.
Looking at the 4-hours chart, the pair traded as low as 1.2785 and later jumped back above the 1.2900 and 1.3000 levels. It traded as high as 1.3028 and recently corrected lower. It moved below the 38.2% Fib retracement level of the last wave from the 1.2785 low to 1.3028 high.
However, declines were limited by the 1.2900 support and the 50% Fib retracement level of the last wave from the 1.2785 low to 1.3028 high. Below the 1.2900 level, there is a major bullish trend line formed with support at 1.2840 on the same chart.
Therefore, dips near the 1.2900 level, the 100 simple moving average (red, 4-hours), and the trend line remains supported. On the upside, the 1.3030 level is a major resistance along with a connecting bearish trend line with current resistance at 1.3035.
If the pair breaks the 1.3030 resistance and the trend line, there could be an upside break towards the 1.3100 and 1.3200 levels.